KUALA LUMPUR, April 3 — Ekuinas Nasional Berhad has divested its entire 60 per cent equity in two third-party administrators (TPA) to global trading and business investment company, Sumitomo Corporation (Sumitomo Corp).
The government-linked private equity fund management company had in a statement today said Sumitomo Corp will become the majority shareholder in both the TPAs, MediExpress Group (MediExpress) and PMCare Sdn Bhd (PMCare).
“Through this divestment, Ekuinas will generate a minimum Internal Rate of Return (IRR) of 38.8 per cent
“The minority or Malaysian shareholders have partially exited but will continue to hold a meaningful stake and remain as management in the respective entities,” said Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir.
He said Ekuinas had been focused in ensuring that Sumitomo Corp would be well-equipped with the right capabilities and vision to continue charting the companies’ positive future.
“SC (Sumitomo Corp) is at the forefront of the healthcare services industry as well as their reputation and experience will bode well for the growth of MediExpress and PMCare,” Syed Yasir Arafat said.
MediExpress, which comprises MediExpress (Malaysia) Sdn Bhd and Health Connect Sdn Bhd, and PMCare are primarily focused on managing both inpatient and outpatient benefits on behalf of their clients.
MediExpress focuses on insurance companies while PMCare mainly services corporate clients.
“Together, they cater to over two million members across more than 3,000 medical providers in Malaysia,” the statement read.
In January 2016, Ekuinas had made its maiden entry into the healthcare sector by investing RM79.8mil in MediExpress and PMCare.
